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The idea of putting DRMed books on it is probably not all that good unless she is technologically proficient. The books would be tied to your account, and she'd have to remember that she could not re-download them from her account (as opposed to how books she purchased herself would work), and would have to back them up onto her pc instead. Maybe a gift card? Or, after she has her account set up, gift some specific books to her?
The same issues arise with any DRMed books on any ereader. You could put some public domain books on there for her, if you know her tastes.
If you are not sure she can handle the wi-fi, 3G would be better, assuming that she is within AT&T coverage.
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